On February 6th, the change data platform (CDP) revealed the 2024 climate change questionnaire scores. Sanhua Intelligent Controls' climate change questionnaire rating for 2024 has leaped from C to B. This achievement marks significant breakthroughs in environmental governance, low-carbon strategy, and climate risk management. It underscores Sanhua’s leadership in sustainable development within the global refrigeration control components and automotive thermal management systems sectors.

Highlight 1: Strategic Governance Upgrade, Building a Full-Chain Climate Governance System

Sanhua Intelligent Controls has deeply integrated climate governance into its corporate governance. The board of directors has established a strategic management and ESG committee to oversee the establishment of climate goals, development of corresponding strategies, and monitor implementation progress. The company actively responds to international initiatives and has officially joined the United Nations Global Compact (UNGC). It has also aligned its climate transition plan with the 1.5°C target outlined in the Paris Agreement.

Highlight 2: Focus on Emission Reduction Achievements, Doubling the Scale of Renewable Energy Applications

Sanhua Intelligent Controls continues to increase the use of renewable energy through building or investing in photovoltaic power generation facilities and the purchase of green electricity. In 2023, the use of renewable energy increased by more than 50% compared to 2022. The company is actively promoting energy structure transformation, expanding the scale of renewable energy applications, continuously optimizing production processes, and striving to gradually reduce carbon emission intensity.

Highlight 3: Pioneering Low-Carbon Technologies, Delivering Industry-Leading Energy-Efficient Products

As a provider of solutions for temperature control and thermal management, the company adheres to green and low-carbon principles to create more environmentally friendly high-quality products. In 2024, the company released the R290 plate heat exchanger, setting multiple optimization goals such as "reducing charge amount and improving heat exchange efficiency". R290 boasts an exceptionally low global warming potential (GWP) and is widely regarded as one of the most environmentally friendly refrigerants available today. Meanwhile, our independently developed electronic expansion valve significantly cuts greenhouse gas emissions across its lifecycle compared to previous products, enabling customers to achieve greater energy efficiency.

Highlight 4: Green Transformation of the Supply Chain, Fostering Upstream and Downstream Collaborative Carbon Reduction

Sanhua Intelligent Controls incorporates environmental requirements into supplier admission standards, promotes energy efficiency optimization cooperation among suppliers, and strengthens green supply chain management. The company relies on digital management to optimize production processes and improve resource use efficiency.

The improvement in this CDP rating fully validates the effectiveness of Sanhua Intelligent Controls' dual-pronged approach of "technology-driven energy saving" and "management-driven carbon reduction", further highlighting Sanhua’s leadership in driving green transition and paving the way for a low-carbon future. In the future, Sanhua Intelligent Controls will continue to enhance its climate governance, scale up green innovation, and support the global refrigeration and automotive thermal management industry in achieving sustainable development goals.